Why half of Brazilians can’t plan for the future

Having a financial plan for the coming years is essential to protect yourself from unforeseen events and to achieve personal or professional goals. The problem is that, according to a survey carried out by Leve, a fintech for financial education, more than half of Brazilians do not know how to organize themselves to achieve these long-term goals.

In the opinion of experts, the lack of knowledge about finance and the low budget are the main barriers people face when thinking about the future.

The survey heard 3,450 people from different regions of the country during the months of November and December 2021. According to the study, 52% of respondents do not have or do not know how to set up a financial plan for the coming years. In addition, 46% said they don’t feel confident setting long-term goals.

“This is a reflection of the lack of basic education of Brazilians to understand that, if you earn R$ 10 thousand, you need to spend R$ 8 thousand, because you have to save to be able to pay IPVA, IPTU, for example, in two months ”, cites Gustavo Raposo, CEO of fintech Leve, as one of the main causes.

According to Raposo, this behavior is more pronounced among younger than older Brazilians. In his view, the difference is due to the period of living between generations. “The younger generation lived in a Brazil with full employment and no high inflation. These young people didn’t live through difficult times and they don’t care so much about the future”, says Leve’s CEO.

In addition to the lack of financial education in training, Raposo cites the socioeconomic reality as another barrier that Brazilians face when carrying out financial planning for the future. “The Brazilian budget is very tight. So, it is necessary to make an effort that is not natural to organize”, adds Raposo.

Valter Police, fiduciary planner at Fiduc and head of Academia Fiduc, cites the Brazilian consumer culture as another obstacle to establishing long-term financial goals. “The price of living today more intensely is not having a little better comfort in the future and even giving up more important goals”, emphasizes Police.

However, some financial contingencies, such as health expenses, prevent long-term financial organization and, when you don’t have an emergency reserve, plans for the next ones can be compromised.

How and when to plan

According to experts in financial education, the ideal time to plan financially with a focus on the future is now. For this, Sigrid Guimarães, partner and CEO of Alocc Gestão Patrimonial, recommends that people list the expenses considered essential and separate them from the expenses considered non-essential. This exercise, in her view, allows people to identify what can be saved and turned into an emergency reserve.

The act of saving, in her view, is to seek a balance between the “pleasure of the present” and the “security” of the future. “You can’t live thinking too much about the future, but also enjoying everything without thinking about tomorrow”, emphasizes the CEO of Alocc Gestão Patrimonial.

When managing to save a part of the income, Sandra Blanco, chief strategist at Órama, recommends allocating these resources to the construction of an emergency fund by investing in the Treasury Law Selic or fixed income funds. “After this process, start diversifying with other fixed income instruments, such as CDB, LCI, LCA, credit funds and multimarket funds”, he emphasizes.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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